Singapore-based multinational bank OCBC has announced a solution for companies looking to diversify their assets using blockchain technology.
Web 3-based solution implies tokenizing company assets and eventually sell them to accredited investors in the ecosystem, according to local reports. OCBC’s solutions differ from digital bonds by going a step further and offering “custom tokenization” for its corporate clients.
The blockchain-based tokenization solution will be available to corporate customers who have assets above SGD10 million (US$7.3 million). Despite the steep figure, the offer has streaks of democratization that ripple through a low minimum investment of SGD 1,000 ($734).
Traditionally, a commercial bank offering corporate bonds requires a minimum investment of SGD 250,000 (US$183,700) and has strict maturities and settlement methods. OCBC Global Markets Head Kenneth Lai clarified that the bank’s offerings would allow investors to choose the duration of the tokenized bonds and the periodic interest payments for bondholders.
Lai added that the first of its kind solution for the Singaporean market will offer several advantages for players in the financial field. The most obvious will be the deconcentration in bond holdings resulting from their fractionation, improved availability, liquidity and risk management.
On the investors’ side, fractionalization allows them to liquidate portions of their bond holdings to finance corporate operations while retaining their participation.
OCBC, the second largest commercial bank in Singapore, looked inward to launch the solution to rely on its in-house tokenization capabilities. Going forward, the financial giant says it will expand the scope of the offering to accommodate a wide range of tokenized assets.
“We are proud to have developed custom tokenized bonds via our asset tokenization platform,” Lai said. “This innovation provides flexible and liquid investment options, providing tangible benefits for our clients.”
The rapid pace of tokenization
Singapore is at the forefront of tokenization in Southeast Asia as it battles for the top spot with Hong Kong. In 2024, SBS and UBI joined forces launch tokenized securities under Project Guardian, the latest in a long line of offerings in the ecosystem.
Citi (NASDAQ: C)-backed BondbloX has been looking at tokenization in Singapore for several years with Moody, joining Project Guardian to assess the potential risks to the local financial system.
“As these opportunities develop, the potential for tokenization to reshape how assets are traded and managed globally becomes increasingly clear, promising a future where digital tokens unlock new financial efficiencies and opportunities,” said Moody’s Chief Strategy Officer, Rajeev Bamra.
Turkey is working on “crypto”
In other news, Turkish commercial bank Garanti BBVA has unveiled a new service that allows its customers to access digital assets in accordance with existing local and regional legislation.
The offer will be led by the bank’s newly minted digital asset arm, Garanti BBVA Kripto, which is equipped with storage facilities. Garanti BBVA has partnered with the Spanish local digital currency exchange Bit2me for trade execution.
The collaboration is expected to provide liquidity for closing and partially fulfill existing regulatory requirements. Turning to Spain for a digital asset service provider is not a flash in the pan as Garanti BBVA is a subsidiary of Spanish financial powerhouse Banco Bilbao Vizcaya Argentaria (BBVA).
During regulations of the European Union’s Markets in Crypto Assets (MiCA) laws, traditional financial institutions can offer digital assets to customers after obtaining approval from local regulatory authorities.
With the latest development, private customers will be able to buy, hold and sell digital assets without leaving Garanti BBVA’s mobile banking platforms. For institutional investors, it is still unclear whether Garanti BBVA will launch a similar offer for the demographic.
The move follows an increase in the number of digital asset investors in Turkey, with impressive numbers placing the country as the third largest by adoption metrics. Investors are flocking to the emerging asset class in droves, eager to secure their wealth from galloping inflation rate while the benefits of improved cross-border transactions accrue to others.
Bit2me CEO Leif Ferreira revealed that Bit2me will not be resting on its laurels following its partnership with Garanti BBVA. Instead, the exchange has set its sights on providing exchange services to a range of commercial banks across Europe, noting that 2025 will be a watershed moment for the asset class.
“2025 marks the starting point for banks to offer crypto buy/sell services,” Ferreira said. “We are partnering with over 50 financial institutions to help them launch their crypto products this year.”
Combining old and new
As digital assets become more common, several commercial banks are expanding the scope of their services to offer customers digital currencies. These banks are authorized by MiCA roll out digital asset services to maintain its market share in the face of fierce competition from new digital banks.
In addition to offering digital asset services to clients, several banks are adding new assets to their balance sheets, a departure from traditional investment strategies. The European Banking Authority (EBA) has since then rolled out new standards for commercial banks to follow when handling digital assets.
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